- G8 Education half year profit $23.75 million, down 22%.
- Revenue was $393.06 million, up 7%.
- Employee costs rose because of new staff to children ratios.
Shares in G8 Education fell hard after the childcare centre operator posted a 22% drop in half year profit to $23.75 million in the face of “challenging” industry conditions.
At the close, its shares were down 16.5% to $2.02.
Revenue was 7% higher at $393.06 million.
However, expenses rose because of regulatory changes to staff to children ratios.
“Looking forward, G8 is very strongly positioned to leverage its scale and reinforce its competitive market position,” says Managing Director Gary Carroll.
He says the the impact of the new Child Care Subsidy which is expected to stimulate demand through improved affordability.
The company declared a first half fully franked dividend of 4.5 cents a share.
The first half results:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.